What waiver must be included in Best Brains franchisee insurance policies regarding subrogation rights?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
All insurance policies must name the Company (and its officers, directors, managers, shareholders, members and employees) as additional insureds, must contain a waiver by the insurance carrier of all subrogation rights against Company, and must provide that we will receive thirty (30) days advance written notice of termination, expiration, cancellation, or modification of any such policy.
Source: Item 23 — RECEIPTS (FDD pages 42–190)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, all insurance policies that a franchisee obtains must include a waiver by the insurance carrier of all subrogation rights against the company. This requirement is part of the broader insurance obligations that Best Brains imposes on its franchisees to protect the brand and the company from potential liabilities.
In practical terms, this means that if an incident occurs at the Best Brains center that leads to an insurance claim, the insurance company cannot seek to recover the claim amount from Best Brains itself. The waiver of subrogation rights ensures that Best Brains is shielded from financial responsibility for incidents covered by the franchisee's insurance policy. This requirement is designed to protect Best Brains from potential financial liabilities arising from the franchisee's operations.
This requirement is fairly standard in franchising, as franchisors typically want to ensure they are protected from liabilities arising from the actions of their franchisees. Franchisees must ensure that their insurance policies include this specific waiver to comply with Best Brains' requirements and avoid potential penalties or breaches of the franchise agreement.